A recovery call or unexpected visit can feel urgent, especially when you are already behind on payments. Start by checking who actually lent the money, who is contacting you, what the loan account shows, and which payment channel the lender has authorised. Do not rely on a caller's threat or promise as proof of the balance, an arrest risk, a settlement, or an approved repayment plan.
For digital loans from an RBI-regulated lender, the lending app may belong to the lender, called the regulated entity (RE), or to a lending service provider (LSP) engaged by it. RBI's Digital Lending Directions, 2025 place obligations on the RE for its LSP arrangements and make the RE responsible for LSP acts and omissions. The app name alone may not tell you which company made the loan. The directions require the RE's website to identify its digital-lending products, apps, LSPs and grievance contacts.
Confirm the lender, account and agent
Open the loan documents you already received: the Key Facts Statement (KFS), sanction letter, loan agreement, account statement and payment schedule. Note the regulated lender's legal name, loan reference, amount originally disbursed, stated balance, due date and the contact details for its grievance officer. Keep full account numbers and identity documents private; use only the minimum account reference needed in a complaint.
If you cannot identify the lender, go to the app's official listing and the company's own website from a trusted source. Do not follow a link or phone number sent by an unexpected caller. RBI's directions require the regulated lender to publish details about its digital lending apps and the LSPs it uses. That information helps you check the relationship, but an RBI listing of an app is not an endorsement of the app or a decision about an individual debt.
For a digital loan in default, the lender must send the authorised recovery agent's particulars to you by email or SMS before that agent contacts you, including when an assigned agent changes. If a caller or visitor says they represent the lender, ask for their name, agency, the lender and a reference you can verify. Then contact the lender using the grievance or customer-care channel in your loan documents or on its website. Do not disclose an OTP, password, PIN, remote-access code or full identity document to prove who you are.
If the account itself is unfamiliar, the credit-report dispute is a separate issue. See our guide to an unknown loan entry on an Indian credit report. If you have already repaid or settled and the report still shows the wrong status, see how to dispute a loan that still appears active after closure.
What RBI says about recovery conduct
RBI's 2022 circular on regulated entities that employ recovery agents applies to all NBFCs, including housing finance companies, and also covers banks and other listed regulated entities. It does not apply to microfinance loans covered by RBI's separate Microfinance Loans Directions. The digital-lending directions continue to refer to this circular and related outsourcing instructions.
The circular says lenders must ensure that they and their agents do not use verbal or physical intimidation or harassment. Its examples include public humiliation, intrusion into the privacy of a borrower's family, referees or friends, inappropriate messages, threatening or anonymous calls, persistent calls, calls before 8 a.m. or after 7 p.m. for overdue-loan recovery, and false or misleading representations. The same circular makes the regulated lender responsible for the conduct of its recovery agents.
Check whether the loan is microfinance
The general recovery-agent circular excludes microfinance loans covered by RBI's separate Microfinance Loans Directions. RBI defines a microfinance loan as a collateral-free loan to a household with annual household income up to ₹3 lakh. The separate framework has different collection terms. For example, it sets a 9 a.m. to 6 p.m. calling window for overdue microfinance loans, requires a mutually decided designated collection place (with a limited home/work visit rule after two successive missed meetings), and says agents must carry the lender's notice and authorization letter plus identification. It also prohibits harsh recovery methods such as threats, abusive language, harassment of relatives or coworkers, and misleading statements about the debt. Ask the lender to confirm in writing how it classifies the loan before applying either set of rules.
These rules do not mean that every repayment reminder, phone call or visit is unlawful. A lender can seek payment through lawful channels. The questions are what was said or done, when it happened, how often, whether private information was exposed, and whether the caller's identity and authority can be verified. Do not infer from one unpleasant interaction that the debt is invalid or that the lender has no further remedies.
If someone arrives or asks you to pay
Keep the interaction factual and calm. You can ask the person to identify the lender and agency, show their work identification, and provide a way to verify the assignment with the lender. Those are practical verification steps; this guide does not decide what a particular person must show in every situation.
Before paying, confirm the amount and account reference through a lender-controlled channel. RBI's Digital Lending Directions require digital-loan repayments to go directly to the regulated entity rather than through a third-party pool account. The directions also allow a lender to use a physical interface to collect cash for a delinquent loan when necessary; if cash is collected, it must be fully reflected in the borrower's account on the same day. Ask for a receipt and check the lender's statement. Do not transfer money to a personal account, personal UPI ID or a payment link that you have not verified with the lender.
Do not sign a blank paper, surrender an original identity document, or hand over a phone or account password. If a person threatens violence, tries to enter by force, or you feel in immediate danger, move to safety and contact local emergency services or police. Do not attempt a physical confrontation. Preserve any lawful records of what happened and get case-specific advice if a formal legal notice or court document arrives.
Keep a clear record and complain to the lender
Save the original call logs, text messages, emails, payment receipts, notices and loan statements. Write a dated note of any visit or conversation: time, place, name or description of the person, agency claimed, words used, witnesses and what you did next. Preserve the original files; annotate a separate copy if you need to explain them. Avoid publishing account numbers, addresses, phone numbers or family details online.
Send a written complaint to the lender's grievance officer. For a digital loan, also use the LSP or app complaint route shown in the KFS, app or lender website if one is listed. RBI's directions require grievance contacts to be made available and say the regulated lender remains responsible for grievance redress. Include the loan reference in masked form, dates and times, the specific conduct, evidence you have, and what you want the lender to do: confirm the current account statement, verify or change the assigned agent, stop the conduct described, and acknowledge the complaint. Ask for a written reply and complaint reference.
A short message can say:
I am writing about loan account ending [last four digits] and recovery contact on [date/time]. The caller/visitor identified themself as [name/agency, if known]. The conduct I am reporting is [brief facts, not conclusions]. Please confirm the account statement and the recovery-agent assignment, investigate the contact, tell me the complaint reference, and explain any repayment options the lender can consider. Please respond in writing. I can provide [specific records] through your verified channel.
Replace the brackets only with facts you can support. Do not send identity or financial documents through an unverified address or chat.
Escalate if the response does not resolve the complaint
The RBI Digital Lending Directions, 2025 say a borrower may submit a complaint through the RBI Complaint Management System under the Reserve Bank–Integrated Ombudsman Scheme when a complaint against the RE or its LSP is rejected wholly or partly, the borrower is not satisfied with the reply, or no reply arrives within 30 days after the RE receives it. The route has eligibility and maintainability conditions; it does not promise a particular result. Check the current Scheme and whether the entity and complaint are covered before filing through the RBI Complaint Management System.
If the app or caller asks for an OTP, remote access, or money to a personal account, stop and verify the lender independently. Where the facts suggest online financial fraud or impersonation, our guide to reporting a cybercrime complaint in India explains how to preserve a report record. An online report does not itself decide who is responsible or guarantee recovery of money.
Ask about a payment plan without assuming it is approved
If a job loss or other change makes the instalment unaffordable, write to the lender promptly and ask whether it can consider a revised payment date, a different instalment schedule, or another documented option. The sources cited here do not promise a general right to a lower EMI, payment holiday, write-off or discounted settlement just because income has changed. The lender's answer, the loan agreement and any product-specific rules matter.
Before you accept an option, ask the lender to state in writing:
- the total amount it says is due and how it calculated it;
- the proposed payment amount and dates;
- every fee, interest amount or other cost that would apply;
- whether the arrangement changes the loan term or account status;
- how payments and any settlement will be reported to credit information companies; and
- what document will confirm completion after you meet the terms.
Do not rely on an agent's verbal promise that the account is “closed,” “settled” or “on hold.” Ask for the lender's written terms and keep the confirmation with the receipts. Do not stop a scheduled payment or make a partial payment on the assumption that a new arrangement exists unless the lender has confirmed what the payment will do.
A short checklist
- Identify the regulated lender from the KFS, sanction letter or loan agreement.
- Verify any assigned recovery agent through the lender's published contact channel.
- Check the statement and pay only through a verified lender route.
- Preserve dated messages, call details, receipts and a factual visit note.
- Send a written grievance to the lender and keep its acknowledgement.
- Ask for any changed repayment or settlement terms in writing before relying on them.
- Check current RBI Scheme eligibility before escalating to the Ombudsman.
This guide is general information, not a legal or financial assessment of a particular loan. If you receive a court notice, threatened legal action, or a formal demand you do not understand, consult a qualified lawyer in the relevant State with the full loan documents and communication history.
For legal teams organizing document review and follow-up across matters, see Gotham's workflow library or contact the team about a team workflow.
Questions
Can an NBFC recovery agent call before 8 a.m. or after 7 p.m.?
For loans covered by RBI's recovery-agent circular, lenders must prevent calls before 8 a.m. or after 7 p.m. for overdue-loan recovery, along with persistent calling and other listed harassment. The circular excludes covered microfinance loans, which have separate directions.
Does an NBFC recovery agent's visit mean I must pay them directly?
No. First verify the lender and agent through the lender's published channel. For a digital loan, RBI directions require the regulated lender to communicate the authorised agent's particulars by email or SMS before the agent contacts you. Use the lender's verified repayment channel and keep the receipt.
Can I require an NBFC to lower my EMI or settle the loan because I lost work?
Do not assume that a reduced EMI, pause, write-off or discounted settlement is automatic. Ask the lender to explain any available option in writing, including the amount, dates, fees and credit-reporting consequences, before agreeing or paying.
When can I take a digital-loan recovery complaint to RBI?
RBI's Digital Lending Directions, 2025 say a borrower may use the Complaint Management System under the Reserve Bank–Integrated Ombudsman Scheme if the lender rejects or inadequately resolves the grievance, or gives no reply within 30 days. Coverage and maintainability conditions still apply; check the current Scheme and the lender's status.
General information only, not legal or financial advice. RBI protections and complaint routes depend on the lender, product, current directions and facts. This article cannot determine whether a particular debt is due, a recovery contact is authorised, or a borrower qualifies for restructuring or settlement.
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